Grupo Lala completes Vigor Alimentos acquisition

Vigor's estimated revenues for 2017 are $731.5m in net sales and an EBITDA of $60.7m, with a margin of 8.3%, according to Grupo Lala.

Cooperativa Central dos Produtores Rurais de Minas Gerais Ltda (CCPR), which owns 50% of Brazilian dairy cooperative Itambé Alimentos, has exercised its right to acquire the remaining 50% of Itambé, which belonged to Vigor.

“Itambé is not part of the existing deal and we will no longer be using equity to fund the existing transaction,”​ Grupo Lala CEO Scot Rank said during the company’s Q3 earnings call.

However, the process has not been finalized yet, according to the company.

“The cooperative still has the right to exercise their right of first refusal, the window is still open for them to do that,” Rank said. ​

When asked by analysts during the Q3 earnings call, Rank declined to comment whether Grupo Lala would be interested in acquiring the 50% share of Itambé should CCPR’s plan to buy the remaining shares not pan out.

“We’re really just waiting for them to conclude their process,” ​Rank said.

Grupo Lala gains Vigor market prominence

Founded in 1917, Vigor has a consolidated infrastructure of more than 3,900 employees, three milk collection centers, nine production facilities and 19 distribution centers, reaching 47,000 points of sale, with a strong presence in the Brazilian states of Sao Paulo, Minas Gerais, and Rio de Janeiro.

“Vigor has leading consumer and food service brands particularly in yogurt where they’re the number one brand in Greek yogurt and number two in total yogurt sales overall,”​ Rank said.

Rank added that Vigor’s portfolio strength also extends to the cheese category where they have the top selling spreadable cheese and shredded cheese brands.

“These core categories have been growing in the three years 15% and 18% respectively. The innovation and new launches in the coming years will enable Vigor to boost its presence in these categories,”​ he said.